How Does Non-Financial Performance Affect Firm Value? An Empirical Study in Indonesia

Pancawati Hardiningsih, Afifatul Jannah, Taswan, Andi Kartika


The purpose of this study was to determine the effect of financial performance on firm value by using social responsibility as a moderating variable. This research was conducted at the Indonesia Stock Exchange (IDX) using a unit of analysis of manufacturing companies that have gone public. Financial performance and corporate value are measured using the proxy return on assets (ROA) and Tobin's Q, while the moderating variable for disclosure of social responsibility is measured using the corporate social disclosure index (CSDI). The number of N samples selected was 445 companies in 2018–2020. The sampling method used purposive sampling. To explain this effect, Multiple Regression Analysis (MRA) was used. The results of the study show that financial performance has a positive effect on firm value, while social responsibility has no effect. This research shows the novelty and originality of non-financial performance, which looks almost the same as previous studies, but is actually fundamentally different. An important finding in this study is that corporate social responsibility (CSR) acts as a moderating variable that strengthens the effect of financial performance on firm value.


Keywords: corporate social responsibility disclosure, financial performance, firm value, moderating variable, multiple regression analysis.



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